BRIEF: Shandong Gold profit doubles on surging gold prices
Gold producer Shandong Gold Mining Co. Ltd. (1787.HK; 600547.SH) said on Tuesday it expects to report net income of 3.8 billion yuan ($532 million) to 4.1 billion yuan for the first three quarters of this year, up 83.9% to 98.5% from the same period last year.
The company attributed the strong growth to improvements in its production layouts and other measures to boost its operational efficiency. It was also aided by surging gold prices during the reporting period.
Boosted by high gold prices, the company said it would increase its investments in infrastructure for its mining operations. It plans to add production equipment, upgrade staffing resources, and gradually transition mining operations previously covered by outsourcing contracts to in-house workers.
Shares of Shandong Gold opened down 5% at HK$38 on Wednesday. The stock has tripled since the beginning of this year.
By Lau Chi Hang
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